Why Progress Software Shares Progressed Higher
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Progress Software (NAS: PRGS) jumped today by as much as 16% after the company reported third quarter results.
So what: Revenue of $107.2 million fell short of the Street's target of over $112 million, but that shortfall was more than made up for by the bottom line beat. Adjusted earnings came out to be $0.31 per share, well ahead of the 0.24 per share profit that investors were hoping for.
Now what: Next quarter's guidance calls for revenue growth between negative 2% and positive 1% compared to last year on a constant currency basis. Operating margin should be between 25% and 30%. Progress Software continues to layoff some of its EMEA workforce in an effort to save costs. The company is looking to reduce expenses by $55 million, with some of these initiatives starting this quarter.
Interested in more info on Progress Software? Add it to your watchlist byclicking here.
The article Why Progress Software Shares Progressed Higher originally appeared on Fool.com.Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.